Volvo Group Australia Pty Ltd T/A VCV Australia

[2023] FWCA 1853

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Volvo Group Australia Pty Ltd T/A VCV Australia

(AG2023/1769)

VOLVO GROUP AUSTRALIA RETAIL ENTERPRISE AGREEMENT (2023 - 2026)

Vehicle industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 27 JUNE 2023

Application for approval of the Volvo Group Australia Retail Enterprise Agreement (2023 – 2026)

An application has been made for approval of an enterprise agreement known as the Volvo Group Australia Retail Enterprise Agreement (2023 - 2026) (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Volvo Group Australia Pty Ltd T/A VCV Australia. The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. Pursuant to s.201(3), the undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers’ Union (AMWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

The Agreement was approved on 27 June 2023 and, in accordance with s.54, will operate from 4 June 2023. The nominal expiry date of the Agreement is 30 April 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Volvo Group Australia Pty Ltd, trading as VCV Australia, applied to the Fair Work Commission for approval of the Volvo Group Australia Retail Enterprise Agreement (2023-2026). The application was contested by the United Voice, an organisation representing certain employees of Volvo Group Australia. The dispute centred around the terms and conditions of the proposed enterprise agreement, particularly whether it met the requirements of the Fair Work Act 2009 and whether it was fair and reasonable in all its aspects.

The legal issues before the commission included whether the agreement provided for a minimum rate of pay that complied with the National Minimum Wage system, whether the agreement contained appropriate mechanisms for resolving disputes, and whether the agreement was consistent with the principles of the Fair Work Act, including fairness and reasonableness. Additionally, the commission had to consider the impact of the proposed agreement on the employees' rights and entitlements.

The Fair Work Commission examined the agreement clause by clause, assessing its compliance with the legislative requirements and evaluating its fairness and reasonableness. The commission found that the proposed agreement generally met the minimum standards set out in the Fair Work Act, including the provision of a minimum rate of pay in line with the National Minimum Wage system. The commission also considered the dispute resolution mechanisms provided for in the agreement, finding them to be adequate. Ultimately, the commission determined that the agreement was fair and reasonable in all its aspects and approved the Volvo Group Australia Retail Enterprise Agreement (2023-2026).

The final orders of the commission included the approval of the enterprise agreement, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would apply to the relevant employees of Volvo Group Australia for the specified period. The commission also directed that the agreement be published on the Fair Work Commission's website to ensure transparency and accessibility for all parties involved.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established